Why Investors Are Turning to Manchester in 2025

Over the past five years, the North West has become the UK’s strongest-performing region for capital growth. As affordability challenges persist in the South and economic uncertainty continues to shift investment strategies, many investors are looking north - and they’re being rewarded for it.

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According to recent data from Home.co.uk, property prices in the North West have risen by 29% since March 2020, outperforming every other region in England and Wales. In contrast, Greater London has seen just a 5% rise over the same period. This stark divide reflects a growing trend: serious investors are moving their portfolios away from overvalued southern markets in favour of high-growth, high-yield northern cities - especially Manchester.

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In this blog, we’ll explore what’s driving growth in the North West, why Manchester remains at the centre of the UK rental market, and how investors can position themselves for success in 2025.

• The North West has seen the highest five-year house price growth in the UK, up 29% since 2020.
• Manchester offers a unique combination of strong rental yields and long-term capital appreciation.
• Short-term rental demand is on the rise, driven by business travel, relocations, and tourism.
• CasaCity supports investors with a full property management service tailored to serviced accommodation in Manchester.

Manchester stands out as the economic and cultural capital of the North West. The city has seen significant regeneration over the past decade, with billions invested in infrastructure, transport, commercial spaces, and residential development.

High tenant demand in the city centre - particularly among young professionals, relocators, and students - continues to underpin the rental market. Combined with a lower average purchase price than many southern cities, the result is a healthy average yield of 6.5% in central Manchester, far exceeding the UK average of 4.75%.

It’s not just long-term rentals seeing success. Short-term rentals in Manchester have become a growing sub-sector of the market. With business travel rebounding, a strong events calendar, and a vibrant tourism industry, the demand for flexible, high-quality accommodation is higher than ever.

The North West’s growth isn’t isolated to Manchester. Cities like Liverpool, Stockport, and Salford have all posted strong gains. Liverpool, in particular, has become a hotspot for investors thanks to its affordability and high rental yields. Ongoing projects like the Liverpool Waters and Wirral Waters developments are expected to further enhance the region’s investment appeal.

Meanwhile, Stockport is emerging as a top ‘next-generation’ market. Located just outside Manchester, it’s benefitting from major regeneration funding and offers attractive purchase prices while still providing access to Manchester’s economic ecosystem.

The strength of these markets reflects a wider shift: as affordability in London and the South East continues to decline, the North West is being recognised not just for its value - but for its long-term growth potential.

At CasaCity, we work with investors in Manchester to help them capitalise on the city’s rental market potential - particularly within the growing serviced accommodation sector.

Our tailored property management model is designed to meet the specific demands of luxury serviced apartments in Manchester, with full end-to-end support that includes:

• Property setup for short-term letting platforms such as Airbnb and Booking.com
• Dynamic pricing and performance optimisation
• Guest communication and check-in coordination
• Professional cleaning and maintenance coordination
• Monthly performance reporting

For landlords looking to stand out in a competitive market, we also provide stunning furniture packs, carefully curated to appeal to corporate travellers, relocators, and leisure guests. These furniture solutions are designed with durability, aesthetic appeal, and functionality in mind - helping to increase nightly rates and positive reviews.

Whether you’re targeting corporate accommodation in Manchester or aiming for consistent tourist bookings, CasaCity gives you the tools and expertise to succeed in the short-term rental space.

With long-term growth trends in its favour and rental yields that remain highly competitive, the North West continues to be the strongest region in the UK for property investment - and Manchester is leading the charge.

The city’s combination of economic opportunity, cultural significance, and growing population makes it a compelling location for landlords looking to diversify or expand their portfolio. Add to that the increasing appeal of short-term lets and serviced accommodation in Manchester, and it’s clear that investors who take a smart, strategic approach now are likely to benefit significantly in the years ahead.

For those ready to take the next step, having a trusted property management partner can make all the difference. At CasaCity, we’re here to help you build a high-performing rental portfolio with confidence.